Citywire interviewed Oliver Fochler, CEO of Stone Mountain Capital, an alternative investment advisor providing alternative investment research, structuring and public and private placement, about some of the trends he is seeing in outsourcing for independent asset mangers. Article with Oliver Fochler was covered in Issue 20 in June 2018 in Citywire under 'Helping Hands - To outsource or not to outsource? Here's what WMs think'.

Stone Mountain Capital is delighted to be the winner of 'Best Placement Agent Europe' in the Property Funds World Awards 2018, which were presented at a ceremony in London on 23 March 2018, recognising excellence among property/real estate fund managers, investors, consultants, advisers and service providers. Winners were decided by a poll of Property Funds World readers, who include both investors and managers as well as other industry professionals.

As per 17th January 2018, Stone Mountain Capital has total alternative Assets under Advisory (AuA) of US$ 51.1 billion in hedge funds and private assets. We are mandated on assets of US$ 48 billion for capital introduction into leading and hedge fund and fund of fund managers with long standing, solid performance track records, liquidity provision, standardized fund and managed account structures and established AuM across the strategies: credit / fixed income, equity, tactical trading and fund of hedge funds (FoF). Our 2018 focus is on the strategies: speciality finance, direct lending, CLO, global macro, CTA, volatility and the cryptocurrency and a continuation of making those strategies tradable in the public markets. We are mandated on US$ 3.1 billion of private assets (private equity and private debt) and corporate finance. Our 2018 sector focus is in private credit, UK and German commercial real estate, and capital relief trades (CRT) for insurers and banks and we provide financial structuring, rating advisory, private and public placements. Stone Mountain Capital has arranged new capital commitments of US$ 1.15 billion across hedge fund, private asset and corporate finance mandates.

As per 1st December 2017, Stone Mountain Capital is celebrating its 5 year firm jubilee and has total alternative Assets under Advisory (AuA) of US$ 50 billion in hedge funds and private assets. We are mandated on assets of US$ 47 billion for capital introduction into leading hedge fund and fund of fund managers with long standing, solid performance track records, liquidity provision, standardized fund and managed account structures and established AuM across the strategies: credit / fixed income, equity, tactical trading and fund of hedge funds (FoF). Our 2017 focus was on the strategies: direct lending, CLO, global macro, CTA, volatility and the cryptocurrency bitcoin and making those strategies tradable in the public markets. We are mandated on US$ 3 billion of private assets (private equity and private debt) and corporate finance. Our 2017 sector focus was health care in commercial real estate, infrastructure / real assets, and capital relief trades (CRT) for insurers and banks and we provide financial structuring, rating advisory, private and public placements. Stone Mountain Capital has arranged new capital commitments of US$ 1.05 billion across hedge fund, private asset and corporate finance mandates.

AXA IM Structured Finance has raised over €1bn in total commitments for the AXA IM Partner Capital Solutions VII Fund at the end of September, following launch in July 2017. The capital committed was raised from sophisticated institutions, insurance companies and pension funds as well as family offices, with both repeat and new clients. This is the largest amount that AXA IM has raised for capital relief trades, reflecting increased asset management foothold in the alternative credit space. Oliver Fochler, CEO at Stone Mountain Capital, echoes similar views. “Capital relief trades are restricted to banks and insurance firms, since they are the ones who have the structuring expertise and the capital need to do them. For other investors in alternative credit it’s just much more convenient to do an outright sale or an acquisition”. However, Fochler confirms a wider investment base among insurers, along with more cash to put to use. 2017 SCI. All rights reserved. Interview with Oliver Fochler, CEO in Stone Mountain Capital LTD was covered on 10th November 2017 in Structured Credit Investor (SCI) under 'AXA boosts risk transfer foothold'(website requires registration).

An increasing number of middle market direct lending fund managers are employing securitisation technology to facilitate the ramp-up and marketing process for their funds. By employing a structure similar to a CLO warehouse, the direct lending funds can be more easily marketed across Europe, while also posing regulatory capital benefits to investors. According to Oliver Fochler, managing partner and CEO of Stone Mountain Capital, a number of managers have set up - or are in the process of setting up - CLO-type structures in order to ramp up mid-market direct lending portfolios. These structures are typically domiciled in Ireland, Malta or Luxembourg. "If the direct lending fund is structured as a securitisation, investors have the option of buying a note as debt rather than shares as equity," said Mr. Fochler. "Under Solvency II there's a benefit of investing in a securitisation over a fund because of the solvency capital ratio. A securitisation structure also typically comes with fewer marketing restrictions than an AIF." Mr. Fochler said he does not anticipate a resurgence of European middle-market CLOs like those seen pre-crisis, however. The direct lending CLO structures or securitisation companies currently in use are, unlike traditional middle market CLOs, not tranched. Structures are also typically unrated and placed in the private market. Stone Mountain Capital has recently structured an in-house European Direct Lending Fund for lower middle-market corporates in AIF format with an associated securitisation vehicle. Interview with Oliver Fochler was covered on 17th July 2017 in Capital Structure under 'CLO Warehouse Structures Providing Ramping And Marketing Benefits To Middle-Market Direct Lending Funds'(website requires registration).

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